VIP Industries Loses ‘Carlton’ Trademark Battle as Delhi HC Upholds Injunction

In a significant legal setback, VIP Industries Ltd has lost its appeal in the Delhi High Court, which upheld a prior injunction restraining the company from using the ‘Carlton’ trademark for its luggage and travel accessories. The ruling came in a long-standing dispute with Carlton Shoes Ltd (CSL), a UK-based lifestyle brand that holds Indian rights to the mark under Class 18 since 1994.

 

VIP had acquired international rights to the Carlton brand in 2004 and argued that it had built goodwill in India through its use of the mark for luggage. However, the court rejected this claim, stating that “goodwill must be established in India, not just globally”, and that CSL had demonstrated consistent use and brand presence in the Indian market since the 1990s.

 

Key Highlights:

 

- Appeal Dismissed: Delhi HC ruled in favor of Carlton Shoes Ltd, upholding the injunction against VIP.

- Trademark Scope: CSL’s rights under Class 18 cover bags and allied goods, not just footwear.

- Goodwill Principle: Court clarified that goodwill resides in the mark itself, not in specific product categories.

- Legal Precedent: Reinforces territorial nature of trademark rights and limits of trans-border reputation claims.

- Market Impact: VIP is now barred from using the ‘Carlton’ mark for any Class 18 goods in India.

 

The judgment is expected to influence future trademark disputes involving overlapping brand rights and cross-border acquisitions.

 

Source: LiveLaw, Bar & Bench, CaseMine